Lookahead to a big week for markets

19 Jul 2019

Markets lookahead to next week where Britain's Conservative party selects a new Prime Minister, PMI figures are released, FAANG stocks come into focus after a bumpy week for Netflix and the European Central Bank is expected to reveal an interest cut is imminent. Francis Maguire reports.

Investors will keep a close eye on the UK next week.

Where citizens will wake July 24 to a new Prime Minister.

Jeremy Hunt and Boris Johnson in the running.

Betting markets favour Johnson to win.

Both have threatened to leave the EU on October 31 without any deal, despite warnings from the country's budget watchdog of the damage that could do to the UK economy.

That's sent Sterling down to its lowest in 27 months - and investors expect more volatility ahead.

Meanwhile monetary easing is the theme in Japan, the euro zone and the U.S.

This year's Purchasing Managers Indexes so far show manufacturing gloom, largely due to the Sino-U.S. trade war

While services activity proves robust.

But there are fears weakness could seep into services, and deal another blow to growth

The European Central Bank meets Thursday, where they're expected to announce an interest cut is imminent.

Mario Draghi stunned investors last month when he announced a return to stimulus.

Money markets have moved quickly since then, and price in a roughly 60% chance of a 10 basis-point cut at the ECB meeting.

The so-called FAANG stocks also in focus next week

Netflix kicked things off on a weak note this week as the video-streaming service saw its first U.S. subscriber drop in eight years.

Facebook, Amazon and Google-parent Alphabet all due to report over the coming days.

With tech companies facing calls to be tighter controlled.

And Facebook under fire from global regulators and banking chiefs for its plan to launch cryptocurrency Libra.

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